Answer the following question(s)using the information below.Grant's Kitchens is approached by Ms.Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Grant's Kitchens has excess capacity.Ms.Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.
-For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis is considered a(n)
A)qualitative factor.
B)relevant cost.
C)differential factor.
D)opportunity cost.
E)quantitative factor.

Question

Answer the following question(s)using the information below.Grant's Kitchens is approached by Ms.Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
  Grant's Kitchens has excess capacity.Ms.Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.
-For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis is considered a(n)
A)qualitative factor. 
B)relevant cost. 
C)differential factor. 
D)opportunity cost. 
E)quantitative factor.

Quizplus · Accepted Answer

The supplier's ability to deliver the item on a timely basis is a qualitative factor that is considered when making a make-or-buy decision.

Answer the Following Question(s)using the Information Below